Erg recorded a good performance in the third quarter of 2021. The company active in the renewable energy sector closed the period with a Net income equal to 30 million euros, a marked increase compared to 9 million in the third quarter of 2020, up adjusted revenues to 264 million, up by 41 million. There is also a clear improvement Mol adjusted consolidated gross operating margin which in the nine months amounted to 119 million euro, compared to 99 million in the same period last year. The results for the third quarter of 2021 confirm a solid financial performance despite some "headwinds", characterized by an unprecedented increase in commodity prices.
Also in the third quarter of 2021, adjusted revenues amounted to €789 million, up by €69 million compared to the same period of 2020. Consolidated adjusted EBITDA was €400 million (against €362 million in the first 9 months of 2020) and the adjusted group net result of 130 million euro, 79 million in the first 9 months of 2020. Net financial debt rose to 1.829 million, up by 137 million compared to 30 June 2021 (1.692 million).
This growth was driven by higher hydroelectric production, greater wind conditions in Italy as well as the significant increase in energy sales prices associated with the higher unit value of the incentive in Italy (i.e. from 99 to 109,4 euro/MWh ). The higher installed capacity in France (+80 MW) also contributed to this good performance.
Paul Merli, CEO of Erg, the quarter was decidedly positive. “The operating results benefit from higher production from hydroelectric, wind and solar power, thanks also to the contribution of the greater installed capacity. Profit growth was more marked, with sharply decreasing financial charges and depreciation thanks to liability management programs, on the debt side, and Life Time Extension, on the asset portfolio side. The unprecedented price scenario, linked to gas and CO2, from which we have only partially benefited due to hedging, confirms the urgency of the energy transition. During the period, Erg accelerated its transformation process into a pure Wind & Solar operator, with the signing, on the one hand, of the agreement for the sale of hydroelectric assets and, on the other, with important investments to consolidate its presence abroad ”
Erg last August completed an agreement with Enel Produzione spa for the sale of the entire capital of Erg Hydro srl. The closing is expected for the first few days of 2022. And in October it reached an agreement, subsequently completed, for the purchase of 15 wind farms in France and Germany.
“The competitive process for the sale of the CCGT plant, which will complete the transformation, is also at an advanced stage. We are revising the EBITDA, capex and net debt guidance upwards”, concluded Merli.
Therefore the 2021 guidance is also up. The forecast for EBITDA is now in the range of €520-550 million (previously 505-525 million), capex between €640-690 million (previously 450-500 million), and the net financial debt between 1.900 and 2.000 million euros (previously 1550-1650 million).
Finally, thanks to the success of the third 500 million euro green bond recently placed, the first with a 10-year maturity, Erg is one of the first Italian "green" issuers. Currently, ESG funding sources account for 86% of the Group's total debt.
